Guangdong Haid Group's (SZSE:002311) stock is up by 2.8% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Particularly, we will be paying attention to Guangdong Haid Group's ROE today.
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
Check out our latest analysis for Guangdong Haid Group
How Do You Calculate Return On Equity?
The formula for return on equity is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity
So, based on the above formula, the ROE for Guangdong Haid Group is:
12% = CN¥2.1b ÷ CN¥18b (Based on the trailing twelve months to September 2022).
The 'return' refers to a company's earnings over the last year. So, this means that for every CN¥1 of its shareholder's investments, the company generates a profit of CN¥0.12.
What Is The Relationship Between ROE And Earnings Growth?
We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.
A Side By Side comparison of Guangdong Haid Group's Earnings Growth And 12% ROE
To start with, Guangdong Haid Group's ROE looks acceptable. Further, the company's ROE compares quite favorably to the industry average of 7.3%. This probably laid the ground for Guangdong Haid Group's moderate 9.2% net income growth seen over the past five years.
As a next step, we compared Guangdong Haid Group's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 7.4%.
![past-earnings-growth](https://usnewsfile.futunn.com/pic/0-17823059-0-0d73d65d7c19d012e06707a2d275301e.png/big)
SZSE:002311 Past Earnings Growth December 15th 2022
Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Guangdong Haid Group fairly valued compared to other companies? These 3 valuation measures might help you decide.
Is Guangdong Haid Group Efficiently Re-investing Its Profits?
Guangdong Haid Group has a low three-year median payout ratio of 24%, meaning that the company retains the remaining 76% of its profits. This suggests that the management is reinvesting most of the profits to grow the business.
Moreover, Guangdong Haid Group is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. Upon studying the latest analysts' consensus data, we found that the company's future payout ratio is expected to rise to 33% over the next three years. Still, forecasts suggest that Guangdong Haid Group's future ROE will rise to 22% even though the the company's payout ratio is expected to rise. We presume that there could some other characteristics of the business that could be driving the anticipated growth in the company's ROE.
Summary
On the whole, we feel that Guangdong Haid Group's performance has been quite good. Particularly, we like that the company is reinvesting heavily into its business, and at a high rate of return. Unsurprisingly, this has led to an impressive earnings growth. That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
廣東海德集團(SZSE:002311)的股票在過去三個月裏上漲了2.8%。考慮到市場從長期來看會獎勵強勁的金融類股,我們想知道,在這種情況下,情況是否如此。今天我們特別關注廣東海德集團的淨資產收益率。
淨資產收益率,即股本回報率,是評估一家公司從股東那裏獲得投資回報的有效程度的有用工具。簡而言之,淨資產收益率顯示了每一美元相對於其股東投資產生的利潤。
查看我們對廣東海德集團的最新分析
你如何計算股本回報率?
這個股本回報率公式是:
股本回報率=(持續經營的)淨利潤?股東權益
因此,根據上述公式,廣東海德集團的淨資產收益率為:
12%=21億元×180億元(以截至2022年9月的12個月為基礎)。
“回報”指的是一家公司過去一年的收益。因此,這意味着股東每投資1元人民幣,公司就會產生0.12元的利潤。
淨資產收益率與盈利增長之間有什麼關係?
我們已經證實,淨資產收益率是一家公司未來收益的有效盈利指標。根據公司將這些利潤再投資或“保留”多少,以及這樣做的效率如何,我們就能夠評估一家公司的收益增長潛力。假設其他條件相同,與沒有相同特徵的公司相比,擁有更高股本回報率和更高利潤保留率的公司通常會有更高的增長率。
廣東海德集團盈利增長與12%淨資產收益率的並列比較
首先,廣東海德集團的淨資產收益率看起來可以接受。此外,該公司的淨資產收益率(ROE)與行業平均水平7.3%相比相當有利。這可能為廣東海德集團過去五年實現9.2%的温和淨利潤增長奠定了基礎。
下一步,我們將廣東海德集團的淨收入增長與行業進行了比較,令人欣喜的是,我們發現該公司看到的增長高於行業平均7.4%的增長。
![past-earnings-growth](https://usnewsfile.futunn.com/pic/0-17823059-0-0d73d65d7c19d012e06707a2d275301e.png/big)
深圳證交所:002311過去的收益增長2022年12月15日
盈利增長是股票估值的一個重要因素。投資者應該嘗試確定預期的收益增長或下降是否已計入價格,無論是哪種情況。通過這樣做,他們將知道股票是將進入清澈的藍色水域,還是等待沼澤水域。與其他公司相比,廣東海德集團的估值是否公平?這3個估值指標可能會幫助你做出決定。
廣東海德集團是否有效地將利潤進行了再投資?
廣東海德集團的三年派息率中值較低,為24%,這意味着該公司將保留剩餘76%的利潤。這表明管理層正在將大部分利潤進行再投資,以實現業務增長。
此外,廣東海德集團決心繼續與股東分享利潤,這是我們從其至少十年的派息歷史中推斷出來的。在研究了最新的分析師共識數據後,我們發現,該公司未來三年的派息率預計將上升至33%。不過,預測顯示,廣東海德集團未來的淨資產收益率將升至22%,儘管該公司的派息率預計會上升。我們推測,可能還有一些其他業務特徵可能推動了公司淨資產收益率的預期增長。
摘要
總體來説,我們覺得廣東海德集團的表現相當不錯。特別是,我們喜歡該公司對其業務進行大量再投資,並以高回報率進行投資。不出所料,這導致了令人印象深刻的收益增長。既然如此,最新的分析師預測顯示,該公司的收益將繼續增長。這些分析師的預期是基於對該行業的廣泛預期,還是基於該公司的基本面?點擊此處進入我們分析師對該公司的預測頁面。
對這篇文章有什麼反饋嗎?擔心內容嗎? 保持聯繫直接與我們聯繫。或者,也可以給編輯組發電子郵件,地址是implywallst.com。
本文由Simply Wall St.撰寫,具有概括性。我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議。它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況。我們的目標是為您帶來由基本面數據驅動的長期重點分析。請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內。Simply Wall St.對上述任何一隻股票都沒有持倉。